The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.By David Gillie
NEW YORK ( ETF Digest) -- The technology sector tends to perform best in the second half of the year -- largely due to back-to-school sales, holiday purchasing and corporate end-of-year expenditures. This is certainly not to say that tech can't perform well in the first half of the year, but most likely it will not do much more than follow the overall market trend. The S&P 500 is showing signs of exhaustion in its rally from December. All of the major tech-sector exchange-traded funds are overbought, more so than the S&P 500 ETF ( SPY). You can't look at tech without looking at Apple ( AAPL). After all, the iPhone and iPad maker has 15.7%, 17.7% and 15.3% weightings, respectively, in the Select Sector Tech SPDR ( XLK), iShares Dow U.S. Tech ( IYW), and PowerShares QQQ Trust 1 ( QQQ). Yes, the QQQ, which tracks the Nasdaq 100, is that heavily weighted in AAPL, and nine of its top 10 holdings are in the tech sector. Therefore, it behooves us to take a quick look at AAPL before we examine our tech-sector ETF. Most noteworthy is that AAPL recently reported a stellar quarter and experienced a gap up overnight from $420 to $450. However, it hasn't gained a new high since then and is looking back on a significant gap. We saw this same gap up in October, which was followed by selling. Additionally, AAPL is at the upper trend line resistance and 0.32% from the 52-week high resistance. With diminished volume, a breakout above these resistance levels is unlikely.